Acesite said the termination will be effective Feb. 28 this year. The contract was to have continued until Jan. 1, 2005.
In the notice of pre-termination issued to Acesite, HIPI said "the hotel’s current physical condition is no longer in keeping with the norms of a "Holiday Inn" hotel in accordance with HIPI guidelines."
In a disclosure to the Philippine Stock Exchange, Acesite said it would have to remove all logos, signs and symbols within the hotel that may be associated with the Holiday Inn brand name under a time frame yet to be specified by HIPI.
Formerly known as Delbros Hotel Corp., Acesite is a foreign-owned domestic corporation incorporated to engage in hotel operations and investing. It owns the Holiday Inn Manila Pavilion Hotel, a de luxe hotel situated along United Nations Ave. in Manila. The operations of the latter are being managed by Holiday Inn Worldwide.
Acesite, however, believes that the physical condition of the hotel is within the current regulation and that it has constantly been upgrading the hotel to conform to safety laws and market demands.
"Numerous strides in machinery replacement, sewerage handling and facade renovation have already been put in place," Acesite corporate secretary Vicente Gregorio said.
Despite the withdrawal by HIPI of the management contract, Acesite believes that the business of the hotel will remain competitive and stable.
The company believes that a well-planned and multi-phased renovation program for the hotel shall be able to fully serve the market niche of the hotel, conform with the Department of Tourism standards and fully satisfy national and local building regulations."
Acesite assured that it will continue to upgrade its fire and life safety systems as part of efforts to provide better service to the public.
A major customer of the hotel is the Philippine Amusement and Gaming Corp. (PAGCOR) which operates the Casino Filipino — Pavilion. – Zinnia dela Peña